- The US dollar continues to be very flat against the Pakistani rupee, which makes sense considering that it is a highly manipulated currency by the central bank in Pakistan.
- The range that they have set continues to hang around the 279 to 280 level and until the authorities in that country makes a different decision.
- It will continue to hug the 50 day EMA and the 200 day EMA.
All things being equal, this is a market that has been very bullish for a very long time. So, it doesn't surprise me that we have to work off a bit of froth. If we could drop down to the 270 level, then it could kick off a bit of a head and shoulders pattern. But until then, I think you're just basically flat and sideways.
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That being said it's possible that traders may use the Pakistani rupee as a bit of a measure for how emerging markets will behave against the US dollar, and therefore I think it does serve its purpose but unless we get some type of intervention from the central bank in Pakistan or perhaps the Federal Reserve suddenly changes its tune, this pair will continue to be very difficult to make swing trades on.
Ultimately, I believe that this is a market that continues to favor the US dollar but if we do pull back just a bit from here, it's very likely that there will be plenty of buyers willing to jump in and take advantage of “cheap U.S. dollars,” as The US dollar is by far one of the most preferred currencies in the world.
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